Tax could generate nearly $2.97 million in revenue

According to figures in the county’s budget, the 1 percent payroll tax the county is planning to implement during the coming fiscal year, which starts July 1, is projected to generate $2,977,388 in revenue countywide.
“You have to remember that all of our projections are just projections and estimates,” cautioned Whitley County Judge-Executive Mike Patrick.
The tax will cost Whitley County about $122,300 to administer this coming fiscal year, including the cost of insurance and social security for two employees.
The county will pay a payroll tax administrator $29,120, and his assistant $17,160. The budget calls for $24,000 to cover a motor vehicle and fuel, $5,800 for a copier, $5,000 for office supplies, $5,000 for a computer system, $6,000 for software, $3,500 for filing cabinets, $1,800 for desks, $2,000 for desk chairs.
The budget also calls for a $26,570 reserve in the occupational tax fund.
The county’s budget projections call for Corbin and Williamsburg to each keep 50 percent of the occupational tax revenue, which comes from their respective cities.
If the cities agree to those rates, Williamsburg will receive about $531,762 while Corbin will get $599,646 in occupational tax funds.
Assuming the projections hold true, this would leave the county with $1,697,110 to put toward debt service and other projects next fiscal year.
So far though, neither city has reached an agreement with the county
Because Whitley County has a population of over 30,000 people, Whitley County is limited to implementing a 1 percent payroll tax under state law.
This also means that Corbin and Williamsburg could then implement their own 1 percent payroll tax, and keep all the revenue coming out of their respective cities. Rather than city workers paying a 1 percent tax to the county and a 1 percent tax the cities, the cities portion of the tax would come out of the county’s overall take.
If each city implements its own tax and doesn’t share with the county, Corbin would receive roughly $1,199,292, and Williamsburg $1,063,524. Minus administrative costs, the county would be left with about $565,702.
If each city insists on keeping 75 percent of the occupational tax revenue from their respective cities, Williamsburg would get about $797,643, and Corbin would receive roughly $899,469. Minus the administrative costs this would leave the county with $1,131,406 in occupational tax revenue for the coming fiscal year.
“I have spoken to both mayors. Until we get the second reading done, and if it passes, then we have something to talk about. Otherwise, I don’t know that we do until we have it in effect,” Patrick said. “If it doesn’t pass the second reading, I don’t have anything to discuss.
“We do have a second reading to go through. I don’t want to abbreviate that process, or shortchange that process. We have to get there before we can move from there in my opinion.”
Patrick said the fiscal court will decide how to spend any payroll tax revenue left over after the county pays its bills.
“It is earmarked to go to debt service,” Patrick said. “Actually, any debt the court currently has, the money would be earmarked for that. Then if there is excess, it is to be used, or decided on by the body to be used for industrial development, road development, improvement of emergency services, police protection, and those things that were listed in the ordinance.”
Patrick said that he doesn’t expect there to be a lot of money left over from the payroll tax this first year.